The Impact of Ride-Hailing Services on Private Car Use in Urban Areas: An Examination in Chinese Cities

Abstract

The rapid development of internet-based ride-hailing services has contributed to transportation in cities and, at the same time, has significantly impacted existing travel modes in cities. A question has emerged as to whether and to what extent ride-hailing services replace private car use. Although the private car is convenient, comfortable, and flexible, it has low utilization rate and high maintenance and parking costs. Better understanding of the relationship between ride-hailing services and the use of private cars has been brought to the forefront for auto dealers and urban transportation policymakers. However, controversies remain regarding how ride-hailing services will impact the use of private cars in cities. Given this setting, our study applied a difference-in-differences method to analyze the impact of ride-hailing services on the use of private cars with balanced panel data from 109 prefecture-level cities in China from 2010 to 2016. Moreover, we employed some methods to verify the robustness of the preliminary results. The empirical results show that ride-hailing services had a negative impact on the use of private cars in urban areas. Over time, the negative impact initially strengthened and then weakened. Further studies showed that ride-hailing services had a more significant negative impact on private car use in eastern cities than in western cities. The results showed that the influence of ride-hailing services on private car use in urban areas is heterogeneous across time and cities.